https://nighthawkrottweilers.com/

https://www.chance-encounter.org/

Business

Philip Morris’s earnings outlook falls short. Why the CFO is optimistic.




Philip Morris International delivered higher-than-expected earnings for the quarter, but the outlook for the year fell slightly below estimates due to currency fluctuations. However, the CFO told Barron’s that challenge may be disappearing as the tobacco company moves quickly to capitalize on its new presence in the U.S.

The company has regained a foothold in the US through the acquisition of Swedish Match in 2022 after an absence dating back to the split with Altria Group ( MO ) 15 years ago. Under that agreement, Altria marketed brands such as Marlboro in the US, while international sales belonged to Philip Morris.

Philip Morris delivered $1.60 per share in adjusted earnings for the second quarter. Analysts followed by FactSet had put in $1[ads1].50 a share. Revenue of $9 billion was also ahead of analysts’ estimates of $8.8 billion.

Philip Morris (ticker: PM ) shares got an early boost from the earnings news, but fell back for a 0.2% gain in early afternoon, partly on management’s outlook for the year ahead.

The company estimates adjusted earnings of $6.13 to $6.22 per share for the full year, while the consensus call among analysts is $6.24.

Advertisement – Scroll to continue


Currencies, based on current exchange rates, are estimated to affect the company’s earnings by 8 to 9.5% for the year, but CFO Emmanuel Babeau told Barron’s that, at least for the moment, the worst of the currency effects seem to be over. Exchange rates are expected to be less of an issue in the second half of the year, he said.

He said that while the quarter was strong, he is equally pleased because the latest trends bode well for Philip Morris’ positioning in fast-growing categories and its expanded presence in the U.S.

Not only did Philip Morris’s Iqos, its heat-not-burn banner product, gain 1.4 million new users in the quarter, but it managed to maintain its share of the growing market, “despite the competition being aggressive in its pricing,” he said. “Heat-not-burn is the category of the future, and we are taking the lion’s share of it.”

Advertisement – Scroll to continue


Higher prices also did not deter consumers from buying Philip Morris’ traditional combustible cigarettes. The company’s market share increased in that segment, which Babeau said was a key win. If “we want to convert smokers to new products, to Iqos or Zyn [a nicotine pouch product from Swedish Match]we have to maintain the connection with them,” said the CFO.

Babeau was also optimistic about Zyn, calling it “the most dynamic brand in the nicotine space today.” The product, which people can use when they can’t smoke or vape, is growing rapidly in the United States, he said.

Moreover, Zyn, and more broadly Swedish Match’s American distribution network, paves the way for Philip Morris’ long-awaited introduction of Iqos to the US, which many hope will happen in the coming quarters.

Advertisement – Scroll to continue


“Six months ago we were not in the United States; now we want to move as fast as possible,” Babeau said. The company is on track to submit a premarket application for Iqos Iluma, an iteration of the product that produces less residue and odor, to the Food and Drug Administration in the fourth quarter, he said.

“We are building the new Marlboro,” he said of Iqos, “an iconic premium aspirational brand that [consumers] want to be associated with.”

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.



Source link

Back to top button

mahjong slot

https://covecasualrestaurant.com/

sbobet

https://mascotasipasa.com/

https://americanturfgrass.com/

https://www.revivalpedia.com/

https://clubarribamidland.com/

https://fishkinggrill.com/